The Week Ahead: Are Investors Really Too Optimistic About NVIDIA Corp (NASDAQ: NVDA)

NVIDIA Corp (NASDAQ:NVDA) currently has a daily average trading volume of 51.29M but it saw 41380483 shares traded in last market. With a market cap of 2365.75B USD, the company’s current market price of $946.30 came rising about 3.58 while comparing to the previous closing price of $913.56. In past 52 weeks, the stock remained buoying in the range of price level as high as $974.00 and as low as $281.52.

Taking a look at 20-day trading activity of NVIDIA Corp (NVDA) gives us an average price of $866.39, while its current price level is -2.84% below from 52-week high level whereas it is 236.14% above from lowest level seen by the stock during that period. Simple moving average of 50 days or SMA-50 of the stock’s closing price is $881.32 while that of 200 days or SMA-200 reads an average of $606.97. A closer look into the stock’s movement over the week reveals that its volatility is standing at 3.01% during that period while stretching the period over a month that increases to 4.30%. It is also necessary to take a look into other indicators of a stock too, to get a better idea about its price movement. And in doing so, we find stock’s 14-day relative strength index (RSI) standing at 62.30 which implies that the stock is in neutral territory.

The company’s shares got several price updates from the analyst firms in past one month and most recent of them is from the Jefferies which initiated the stock as “Buy” in its note to investors issued on May 13, 2024, recommending a price target of between $780 and $1200 for it. Raymond James issued its recommendations for the stock as it reiterated the price target for the stock in the range of between $850 and $1100.

Over the week, NVDA’s stock price is moving 4.67% up while it is 8.25% when we observe its performance for the past one month. Year-to-date it is 91.09% up and over the past year, the stock is showing an upside performance of 226.84%.

Currently, NVIDIA Corp’s total number of outstanding shares is 2.46B. Company’s return on investment (ROI) stands at 56.62% and return on equity (ROE) at 91.46%. It has a price to earnings ratio (P/E ratio) of 79.28 while having a 30.05 of forward P/E ratio. Stock’s beta reads 1.65. Stock has a price to book (P/B) ratio of 54.25 while price to sale or P/S ratio amounts to 38.83. Its return on asset (ROA) is 55.67% on average.